Bearish – TSLA $ 294.79 – Consumer Discretionary
The idea presented is the opinion of the Options Action staff and not a recommendation by OptionsPlay.
On Friday’s Options Action, the crew analyzed the performance of Tesla stock. Tesla has benefited from being lead by a serial entrepreneur and created industry-leading electric cars, years ahead of its competition. However, competition is now catching up and TSLA may need to raise new capital. Expecting TSLA to pullback, Michael Khouw suggests buying an April/June 250 Put Calendar for an $11.25 Debit. As of Friday’s close, these puts were trading at a $10.40 Debit.
We’ve structured this trade in OptionsPlay so you can analyze and view this trade along with the supporting technical chart at your convenience. You can also view the Options Action’s video by clicking on the following link: TSLA Options Action Video